Assume both the marginal cost and the average variable cost curves are U-shaped. At the minimum point on the AVC curve, marginal cost must be:
A) greater than the average variable cost.
B) less than the average variable cost.
C) equal to the average variable cost.
D) at its minimum.

Question

Assume both the marginal cost and the average variable cost curves are U-shaped. At the minimum point on the AVC curve, marginal cost must be:
A) greater than the average variable cost.
B) ​less than the average variable cost.
C) ​equal to the average variable cost.
D) ​at its minimum.

Quizplus · Accepted Answer

At the minimum point on the AVC curve, the marginal cost curve intersects it. At this point, the marginal cost is equal to the average variable cost.

Assume Both the Marginal Cost and the Average Variable Cost